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I'm Bearish OpenAI

May 17, 2024 - stovetop.substack.com
The article discusses the author's skepticism about OpenAI's future prospects, despite the company's recent unveiling of its flagship model, GPT-4o, and potential deal with Apple. The author argues that OpenAI, as a software and hardware company, will ultimately lose to tech giants like Apple, Google, and Meta due to the latter's vast resources and dominance in the market. The author also expresses concern about OpenAI's focus on consumer-facing products, which they believe is a losing battle and a drain on valuable compute resources.

The author suggests that OpenAI's only hope is to be the first to achieve Artificial General Intelligence (AGI), but doubts their ability to do so due to a perceived brain drain and shift in focus. They also highlight the immense costs associated with AI development and the potential for chip shortages, likening the situation to the oil industry. The author concludes by expressing concern about OpenAI's future, especially if their next models underperform, and believes that every day without AGI allows other tech giants to close the gap.

Key takeaways:

  • OpenAI unveiled its latest flagship model, GPT-4o, and is nearing a deal to put ChatGPT’s technology into the iPhone.
  • The author is bearish on OpenAI, believing it will lose to Apple, Google, and Meta in both software and hardware, and that its only hope is to be the first to AGI (Artificial General Intelligence).
  • Big Tech companies are investing heavily in AI hardware and data centers, with Meta, Microsoft, and Google spending billions in capital expenditures.
  • The author suggests that OpenAI's focus on consumer-facing products and the departure of key researchers indicate a loss of confidence in their ability to build AGI.
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